SB9 Suspended in Fire Zones: What Investors Need to Know

Two executive orders matter for investors looking to use SB9 in fire-prone areas. Gov. Newsom's Executive Order N-32-25 and the LA Mayor's Emergency Executive Order 9 from July 2025. Both temporarily suspend SB9 lot splits and developments in designated fire hazard zones.

What the Orders Say

Newsom's order suspends the ministerial approval process for SB9 projects in Very High Fire Hazard Severity Zones (VHFHSZ). Cities and counties can pause or deny approvals for lot splits and duplexes in these zones. The suspension started July 1, 2025 and runs through December 31, 2026.

The LA order adds restrictions inside the Palisades Fire Zone and Eaton Canyon Fire Zone with stricter local review for any SB9 projects in those areas. Same timeline.

Which Areas Are Affected

VHFHSZ maps are publicly available from CAL FIRE. These zones cover nearly 20% of California's land area, mostly foothills, mountains, and wildland-urban edges. If you buy a property in these zones, the odds you can move forward with an SB9 lot split are zero until at least 2027.

How to Check Your Property

Go to the CAL FIRE Fire Hazard Severity Zone Viewer (egis.fire.ca.gov/FHSZ/). Enter the property address or parcel number. Check if it falls within a VHFHSZ. If in LA, cross-check with local maps for Palisades and Eaton Fire Zone boundaries.

What This Means for Underwriting

If your underwriting model assumes immediate lot splits, it's broken for properties in these zones. The math is painful: 18 months of lost rent on a planned duplex at $3,500/unit equals $126,000 in lost gross income. Add carrying costs of roughly $13,000 and potential fire safety upgrades of $50,000-$100,000. Total impact: north of $200,000 on a single deal.

Always check fire zones early in deal screening. Discount offers on properties inside suspended zones by 25-30% to compensate for delay and extra costs. Build fire safety upgrade costs explicitly into your budgets.